A few weeks ago, I found myself in need of a locksmith to change a lock on my front door. After a quick online search, I found a local locksmith service with good reviews and called for a quote. The locksmith gave me an estimate of $150 for a basic lock change — a price that seemed reasonable for what I assumed was a relatively simple job.
But when the locksmith arrived on-site, the situation quickly changed.
The locksmith came to me with a completely different story: due to the “cold weather” and the fact that he had “lost two jobs” because of the wait, the price for the lock change was now $250 — a 66% increase from the original quote. This sudden price hike seemed arbitrary and unfair, and to make matters worse, it felt like I was being manipulated into accepting the inflated charge because I was already there, locked out of my home, and waiting for service. When I complained about this, he retorted, “Do you need service or what?” and then returned back to replacing the lock.
This was a classic case of bait and switch — a deceptive marketing tactic where a business offers a low price to lure you in, only to raise it once you’re committed or already on-site, often citing vague or made-up reasons. In my case, the locksmith used the cold weather and his supposed lost business opportunities as excuses to justify the higher price. But here’s the kicker: this tactic is not just unethical — it’s illegal.
What Is the Bait and Switch Tactic?
At its core, a bait and switch occurs when a business advertises a product or service at a low price (the “bait”), only for the consumer to discover once they’re committed that the product or service isn’t available at that price or is unavailable altogether. Instead, the business pressures the consumer to buy something more expensive or less desirable (the “switch”).
For instance, in my situation, the locksmith’s initial price of $150 was the bait. Once I was on-site, locked out and vulnerable, he switched the price to $250, citing arbitrary reasons like the weather and lost jobs. This change wasn’t a reflection of any real cost increase but rather a manipulation of the situation to make me feel forced to pay the higher price.
Why Is Bait and Switch Illegal?
The bait and switch tactic is not just a sleazy sales maneuver — it’s actually prohibited under various consumer protection laws. The Federal Trade Commission (FTC), which enforces advertising regulations in the U.S., considers bait and switch to be an unfair and deceptive practice.
Under the FTC Act, businesses are prohibited from advertising products or services with the intent to deceive or mislead consumers. Specifically, the FTC’s Guides Against Bait Advertising state that it is illegal for businesses to:
- Advertise a product or service at an attractive price, knowing that they either don’t have it in stock or are not willing to provide it at that price.
- Switch the price after the consumer has made a commitment, like arriving on-site or placing an order.
- Create false urgency, such as claiming that the price increase is due to “unforeseen circumstances” or “lost opportunities,” as was done in my case.
In addition to federal regulations, state laws also provide additional protections. For example, Illinois’ Consumer Fraud and Deceptive Business Practices Act mirrors the federal law and allows consumers to file complaints and even sue businesses that engage in bait and switch practices.
The Role of Consumer Protection Laws: Credit Card Protections
If you’ve ever been the victim of a bait and switch or any other deceptive business practice, it’s important to know that you’re not without recourse. The law provides several tools and protections, particularly through credit card consumer protection laws, which can help you dispute charges for goods or services that were not rendered as promised.
Fair Credit Billing Act (FCBA)
The Fair Credit Billing Act (FCBA), a federal law, protects consumers by allowing them to dispute billing errors on their credit card accounts, including charges for goods or services that were not received or were not as advertised. The FCBA ensures that consumers can address fraudulent charges quickly and efficiently.
In my case, if I had paid the locksmith using a credit card and he charged me $250 after quoting $150, I would have been able to file a dispute through my credit card company. I could argue that the price hike was not authorized or justified, and the credit card company would be required to investigate the issue, potentially reversing the charge (a process known as a chargeback).
Chargebacks: A Powerful Tool for Consumers
A chargeback is one of the strongest consumer protections available for disputing fraudulent charges. If you’ve been charged for a service that wasn’t performed as promised (like a bait and switch), you can initiate a chargeback with your credit card issuer.
The process typically works as follows:
- You contact your credit card issuer and inform them that you dispute the charge.
- The issuer will request supporting evidence (e.g., receipts, communications, initial quotes) to support your case.
- The card issuer investigates the dispute and, if they determine the charge was fraudulent, they will reverse the transaction.
Chargebacks give consumers a means to protect themselves, especially when businesses try to take advantage of them by changing terms at the last minute.
State-Level Protections
In addition to federal laws like the FCBA, many states have additional consumer protection statutes that address deceptive pricing practices. For instance, in states like California, New York, and Illinois, consumers have extra protection under their state’s consumer fraud laws. These laws allow you to take legal action against businesses that engage in fraudulent practices like bait and switch.
How to Dispute Credit Card Charges
If you find yourself in a situation where you’ve been charged for a product or service that didn’t match what was advertised — such as with a bait and switch — here are the steps you can take to dispute the charge:
1. Review Your Transaction and Communication
Before disputing a charge, make sure you have all the necessary information. Review any quotes, written agreements, or communications (e.g., texts or emails) that reflect the initial agreed-upon price.
2. Contact the Merchant
Reach out to the business directly to discuss the issue. In many cases, the business may be willing to resolve the issue without going through the dispute process. Explain the situation calmly and provide any evidence that supports your case.
3. File a Dispute with Your Credit Card Issuer
If the merchant refuses to resolve the issue or you’re unable to reach them, the next step is to contact your credit card issuer. Most major credit card companies allow you to file a dispute directly online or over the phone.
Provide the credit card issuer with:
- The initial quoted price.
- A detailed explanation of the price increase and why it’s unfair.
- Any supporting documents or communications.
4. Follow Up and Track the Dispute
Credit card companies usually give consumers 60 days from the date of the statement to file a dispute. Keep track of your dispute and follow up regularly if necessary. If the chargeback is approved, the charge will be removed from your account, and you’ll get your money back.
5. Escalate to Consumer Protection Agencies
If the issue is not resolved through your credit card company, you can escalate the issue by filing a complaint with consumer protection agencies like the Federal Trade Commission (FTC), your state’s Attorney General’s office, or the Consumer Financial Protection Bureau (CFPB). These agencies can help investigate deceptive business practices and may take action against the business.
Becoming an Educated Consumer
The best way to protect yourself from bait and switch tactics is to be an educated consumer. Here are some resources and practical steps to help you navigate the marketplace:
1. FTC Consumer Protection Resources
The Federal Trade Commission (FTC) offers a variety of resources to help consumers understand deceptive practices and how to protect themselves. Their website includes articles on recognizing scams, reporting fraud, and filing complaints. Visit the FTC website at www.ftc.gov.
2. Know Your Credit Card Rights
Familiarize yourself with the Fair Credit Billing Act and chargeback processes. Understanding your rights under these laws can make it easier to dispute unfair charges. Your credit card company will also typically provide a guide on how to dispute charges.
3. Read the Fine Print
Before agreeing to any service, make sure you read the fine print. Pay particular attention to pricing terms, additional fees, and any language that could allow the company to change the terms after you’ve committed.
4. Research and Reviews
Before hiring a service or making a purchase, research the company’s reviews and reputation. Websites like Better Business Bureau (BBB), Trustpilot, and Google Reviews can help you determine if a business has a history of bait and switch tactics.
Conclusion
Bait and switch tactics are a deceptive and illegal practice that can leave consumers feeling manipulated and taken advantage of. Fortunately, consumer protection laws like the Fair Credit Billing Act and chargeback rights offer powerful tools to fight back against fraudulent charges. By educating yourself about your rights and how to dispute unfair charges, you can protect yourself and hold businesses accountable for their actions.
Next time you’re faced with a bait and switch scenario, you’ll know exactly what to do: stay calm, document everything, and dispute the charge. The more you know, the better equipped you’ll be to avoid falling victim to scams, and to stand up for your rights as a consumer.